Fri, 31 Jan 2025

Here's what Trump’s tariff threats look like on the ground in China

President Donald Trump is threatening 10% tariffs on Chinese goods as soon as Saturday, and manufacturers in China are figuring out how to cope.

* Chinese manufacturers are bracing for impact as US President Donald Trump threatens to impose tariffs on China
* Trump has proposed a 25% tariff on Canada and Mexico, but will still impose 10% tariffs on imports from China starting Saturday
* Chinese businesses are stockpiling products in warehouses in the US to avoid border taxes, with some considering moving production to other countries such as Vietnam or Dubai
* Companies are also discussing splitting the costs of tariffs with their US clients
* Some manufacturers have a breaking point at which it would no longer make sense to sell to the US, with tariff thresholds ranging from 20-60%
* The uncertainty and potential damage to exporters has made the US market less attractive for some Chinese businesses
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